Semiconductor Industry Expansion: Two Multi Billion Dollar Plant coming in India

In a recent interview with PTI, Minister of Electronics and IT Rajeev Chandrasekhar unveiled significant advancements in India's semiconductor sector, signalling the emergence of two full-fledged semiconductor fabrication plants in the country alongside multiple chip assembly and packaging units. These forthcoming projects, backed by multi-billion dollar investments, mark a pivotal stride in India's technological landscape.

Key Highlights

• Two semiconductor fabrication plants and chip assembly units planned, marking significant progress in India's semiconductor sector.
• Tower Semiconductors and Tata Group propose multi-billion dollar investments, showcasing industry potential.
• Swift project approval targeted, possibly during PM Modi's tenure, emphasising proposal credibility.
• Additional proposals received for semiconductor manufacturing and chip assembly, highlighting industry momentum.
• Chandrasekhar stresses India's semiconductor journey, focus on growth, exports, and alignment with PM Modi's vision.

Major Investment Proposals: Tower Semiconductors and Tata Group Lead the Charge

Chandrasekhar revealed details of prominent investment proposals, including an USD 8 billion initiative from Israel-based Tower Semiconductors and another significant proposal from the esteemed Tata Group. These ventures are poised to leverage cutting-edge technologies such as 65, 40, and 28-nanometer processes, with additional packaging proposals currently under evaluation.

Approval Timeline and Government Response

The minister outlined the anticipated timeline for project approval, indicating potential clearance during the third term of Prime Minister Narendra Modi's tenure if not sooner. He underscored the credibility and significance of the investment proposals received, citing Tata Group's continued contributions to the semiconductor fabrication domain.

Government Reception and Additional Initiatives

In addition to the aforementioned proposals, the government has received a total of four proposals for semiconductor manufacturing plants and 13 for chip assembly, testing, monitoring, and packaging (ATMP) units. These initiatives complement the INR 22,516-crore chip assembly plant set up by US-based Micron in Gujarat, further solidifying India's presence in the global semiconductor arena.

Charting India's Semiconductor Journey

Reflecting on India's semiconductor trajectory, Chandrasekhar highlighted past neglect of the electronics sector and the subsequent need for rapid catch-up. He outlined significant progress made in various facets of semiconductor development, including design, startups, research, talent, packaging, and fabrication.

Accelerating Growth and Export Opportunities

Government data showcased a remarkable surge in domestic electronics manufacturing over the past decade, with expectations of continued growth aiming to reach INR 300 billion by 2026. Chandrasekhar also advocated for policy measures to facilitate export-led manufacturing, citing a letter he wrote to Finance Minister Nirmala Sitharaman urging a reduction in import duty on electronic components.

Also Read: JLR Explores Major EV Investment in India: Gujarat Plant, Tata's EMA Architecture, and Ambitious 3,00,000 Unit Project

Sustainable Leadership and Global Engagement

Drawing inspiration from former Intel CEO Andrew Grove's philosophy of being "paranoid," Chandrasekhar emphasised the need for vigilance and proactive measures to sustain India's leadership in the global electronics market. He highlighted India's pivotal role in the shifting global value chain of electronics manufacturing and expressed optimism about the country's trajectory towards becoming a global leader in electronics production.

Prime Minister Modi's Vision and Government Commitment

With Prime Minister Modi's ambitious vision of achieving USD 300 billion in electronics manufacturing by 2026-27, Chandrasekhar affirmed the government's commitment to fostering innovation, competitiveness, and self-reliance in the sector. He celebrated India's progress in mobile handset manufacturing, transitioning from importer to exporter, and emphasized the government's determination to establish the country as a trusted partner in global value chains.

Carbike360 Says

The announcement of two semiconductor plants and major investments signals India's stride in the tech sector. With swift approval targeted and additional proposals received, India's semiconductor industry is gaining momentum. Chandrasekhar's emphasis on growth and alignment with PM Modi's vision underscores India's determination to lead in electronics manufacturing.